Elon Musk said on Wednesday that xAI has conducted a reorganization that led to the departure of some employees as the artificial intelligence firm scales its operations.
In a post on X, Musk wrote: "xAI was reorganized a few days ago to improve speed of execution," adding that the change "unfortunately required parting ways with some people." The company did not provide additional headcount figures in Musk's post.
Those personnel moves come shortly after a separate announcement that SpaceX will acquire xAI, a transaction presented as a step toward creating a combined entity valued at $1.25 trillion. The plan includes taking the enlarged company public later this year, with proceeds intended to support the billionaire's stated goal of placing data centers in space.
On Tuesday, two co-founders of xAI, Tony Wu and Jimmy Ba, said in social media posts that they had resigned from the firm they helped start with Musk less than three years ago. Their exits add to a broader turnover at the company and contribute to what the company described as an exodus that has left it with half of its 12 co-founders no longer working there.
The public statements tie three developments together: a corporate reorganization announced by Musk, the planned acquisition by SpaceX with an associated public listing, and the departure of multiple founding executives. Beyond Musk's statement and the resignations by Wu and Ba, the company has not released further operational details in the posts referenced here.
Context and available facts
- Elon Musk confirmed a reorganization at xAI that resulted in staff reductions.
- SpaceX has said it will buy xAI as part of a plan to create a $1.25 trillion company and to take that company public later this year to help finance plans for data centers in space.
- Co-founders Tony Wu and Jimmy Ba announced their resignations, contributing to an exodus that has reduced the number of active co-founders from 12 to half that number.
The information above is drawn from the public statements and social media posts described, and the company has not provided additional details in those posts about timing, specific headcount numbers beyond "some people," or the operational steps that will follow the reorganization.